In this article, we’re exploring the benefits of current account opening.
This will be relevant for prospective account openers in countries like India, the United Kingdom, Ireland, and anywhere else in the world where current accounts exist.
Of course, most of these benefits also apply to checking accounts, which can be accessed in the United States, Canada, and elsewhere.
This article is part of our free series on how to open a bank account, which covers bank accounts for all possible scenarios, including when an account has been deemed dormant.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Benefits of Current Account
- What’s the Difference Between a Savings Account and a Current Account?
- How to Open a Bank Current Account in India
- Frequently Asked Questions
- Ready to Explore Your Options?
Benefits of Current Account
The benefits of a current account typically involve the ability to send and receive transactions. This is because a current account is designed to support the day-to-day transaction needs of the account holder. With this in mind, current accounts include a debit card, and cheques, and can send wires.
Here is a closer look at common benefits that account holders look for when opening a current account:
- Send and receive day-to-day transactions
- Make payments with a debit card
- Ability to write cheques
- No restrictions on withdrawals
- Limited fees for transactions
- And more
What’s the Difference Between a Savings Account and a Current Account?
The main difference between a savings account and a current account is that a savings account incentivizes depositors to keep money in the account and limits the number of transactions that can happen each month. On the other hand, a current account is a transactional account that is intended for day-to-day transaction activities.
Not surprisingly, the interest that can be earned on a savings account is considerably higher than the interest that can be earned on a current account. In fact, in many cases, current accounts do not earn any interest.
How to Open a Current Bank Account in India
To open a current bank account in India, you will first need to determine which bank you want to apply to. Then, you will need to collect your account opening documentation and complete an application.
Of course, before applying, it’s important that you consider whether or not you can meet the bank’s requirements. These typically include:
- Government-issued identification
- Tax identification number
- Completed application forms
- Qualifying deposit
What Is the Minimum Balance Required to Open a Current Account?
The minimum balance required to open a current account ultimately depends on where the account is being opened. More specifically, it depends on the account opening requirements of the bank. Additionally, non-resident and resident individuals typically have different account opening requirements as well. For example, while it may be possible for a local resident to open an account with a few hundred dollars, it is not uncommon for a non-resident to deposit several thousand to open the same account with the same bank.
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Frequently Asked Questions
Below are three of the most common questions that we receive from people looking into the benefits of a current account. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
What Is the Best Current Account in India?
The best current account in India ultimately depends on the specific benefits that you are optimizing for. However, in most cases, one of India’s largest banks will offer the best combination of quality, service, and cost-effectiveness. With this in mind, many individuals consider State Bank of India, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank.
What Is a Zero Balance Current Account?
A zero-balance current account refers to a current account that allows the account holder to keep an account open with a specific balance requirement. In other words, all funds can be withdrawn from the account and the account will remain open.
What Is the Age Requirement For Opening Current Accounts?
The age requirement for opening current accounts depends on the jurisdiction where the account is being opened. However, in most jurisdictions, current accounts can be opened for individuals 16 years of age or older. That said, certain banks do enforce an 18-year-old minimum age requirement.
Ready to Explore Your Options?
If you would like assistance navigating your banking options at home or abroad, we can help.
You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.
But, if you want a personal account opening service, consider GlobalBanks Insider. Insider is a one-on-one account opening service including direct support from our team of experts. This includes direct banker introductions and help to choose where to open.
Of course, if you have any questions, please contact us directly.
